An inferior good has an income elasticity of demand that is

Supply shocks are a potential source of higher inflation, unless the government counters with ________ policy that ________ the money growth rate

A) extinguishing, reduces B) extinguishing, increases C) neutral, leaves unchanged D) accommodative, reduces E) accommodative, increases

Rational expectations are more accurate than adaptive expectations, ________

A) on average B) always C) because they require less information D) except when policies have changed